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UK Financial Institutions Focus On AI As Productivity Surges: Research

Artificial intelligence has reportedly moved from pilot to performance for UK financial institutions.
According to the latest Lloyds’ Financial Institutions Sentiment Survey, the sector is entering a new phase of AI maturity, with firms reporting tangible business benefits and “increased investment in the technology over the last 12 months.”
The annual survey, which captures insights from “over 100 senior leaders across the UK’s largest banks, asset and wealth managers, insurers, and financial sponsors, reveals a sharp rise in AI adoption” and impact:
- 59% of institutions now report improved productivity from AI (vs 32% in 2024)
- 33% are enhancing client experience (vs 14% in 2024)
- 33% are gaining deeper customer insights (vs 18% in 2024)
- 21% say AI is directly driving business growth (vs 8% in 2024)
This momentum is fueling a shift in sentiment, with “91% of institutions now viewing AI as more of an opportunity than a threat, up from 80% in 2024. With confidence rising, investment is increasing.”
Over half (51%) of institutions plan to “increase AI investment over the next 12 months, with a further 22% maintaining current levels of spend.”
We’re reimagining how we operate by “harnessing the full potential of AI – embedding it across their business to drive smarter decisions, faster outcomes and better experiences.”
Looking ahead, institutions see AI as a strategic lever:
- 54% expect it to deliver competitive advantage
- 53% anticipate cost savings
- 52% believe it will drive business growth
- 50% say it will help build a more technologically skilled workforce
To support this, nearly half (48%) of institutions have “set up dedicated AI teams, while 20% have partnered with external AI providers to accelerate adoption.”
Beyond this, there is growing optimism about AI’s potential “to benefit the broader economy, with 63% of institutions believing that advancements in AI will support UK economic growth.”
However, many feel that further momentum is needed, “with 70% saying the UK should accelerate its national AI strategy to keep pace globally.”
This year’s FISS findings show that UK financial institutions “are not only investing in AI, they’re building it into the fabric of their businesses and seeing measurable gains.”
The productivity uplift alone is a “sign that these technologies are already reshaping the industry.”
They remain focused on supporting financial institutions “to embed the technology in a way that drives measurable outcomes.”
Rohit Dhawan, Director of AI and Advanced Analytics at Lloyds Banking Group said:
“We’re seeing AI move firmly into the execution phase. Institutions are building on early investments and delivering tangible outcomes, such as productivity gains and sharper customer insights. At Lloyds, we now have over 800 models in operation, representing more than 200 AI use cases, designed to enhance colleague and customer experience, and we believe that, with the right focus, the UK has an opportunity to lead in responsible AI adoption across financial services.”
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Fight AI-powered cyber attacks with AI tools, intelligence leaders say

Cyber defenders need AI tools to fend off a new generation of AI-powered attacks, the head of the National Geospatial-Intelligence Agency said Wednesday.
“The concept of using AI to combat AI attack or something like that is very real to us. So this, again, is commanders’ business. You need to enable your [chief information security officer] with the tools that he or she needs in order to employ AI to properly handle AI-generated threats,” Vice Adm. Frank Whitworth said at the Billington Cybersecurity Summit Wednesday.
Artificial intelligence has reshaped cyber, making it easier for hackers to manipulate data and craft more convincing fraud campaigns, like phishing emails used in ransomware attacks.
Whitworth spoke a day after Sean Cairncross, the White House’s new national cyber director, called for a “whole-of-nation” approach to ward off foreign-based cyberattacks.
“Engagement and increased involvement with the private sector is necessary for our success,” Cairncross said Tuesday at the event. “I’m committed to marshalling a unified, whole-of-nation approach on this, working in lockstep with our allies who share our commitment to democratic values, privacy and liberty…Together, we’ll explore concepts of operation to enable our extremely capable private sector, from exposing malign actions to shifting adversaries’ risk calculus and bolstering resilience.”
The Pentagon has been incorporating AI, from administrative tasks to combat. The NGA has long used it to spot and predict threats; use of its signature Maven platform has doubled since January and quadrupled since March 2024.
But the agency is also using “good old-fashioned automation” to more quickly make the military’s maps.
“This year, we were able to produce 7,500 maps of the area involving Latin America and a little bit of Central America…that would have been 7.5 years of work, and we did it in 7.5 weeks,” Whitworth said. “Sometimes just good old-fashioned automation, better practices of using automation, it helps you achieve some of the speed, the velocity that we’re looking for.”
The military’s top officer also stressed the importance of using advanced tech to monitor and preempt modern threats.
“There’s always risk of unintended escalation, and that’s what’s so important about using advanced tech tools to understand the environment that we’re operating in and to help leaders see and sense the risk that we’re facing. And there’s really no shortage of those risks right now,” said Gen. Dan Caine, chairman of the Joint Chiefs of Staff, who has an extensive background in irregular warfare and special operations, which can lean heavily on cutting-edge technologies.
“The fight is now centered in many ways around our ability to harvest all of the available information, put it into an appropriate data set, stack stuff on top of it—APIs and others—and end up with a single pane of glass that allows commanders at every echelon…to see that, those data bits at the time and place that we need to to be able to make smart tactical, operational and strategic decisions that will allow us to win and dominate on the battlefields of the future. And so AI is a big part of that,” Caine said.
The Pentagon recently awarded $200 million in AI contracts while the Army doubled down on its partnership with Palantir with a decade-long contract potentially worth $10 billion. The Pentagon has also curbed development of its primary AI platform, Advana, and slashed staff in its chief data and AI office with plans of a reorganization that promises to “accelerate Department-wide AI transformation” and make the Defense Department “an AI-first enterprise.”
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Study sheds light on hurdles faced in transforming NHS health care with AI

Implementing artificial intelligence (AI) into NHS hospitals is far harder than initially anticipated, with complications around governance, contracts, data collection, harmonization with old IT systems, finding the right AI tools and staff training, finds a major new UK study led by UCL researchers.
Authors of the study, published in eClinicalMedicine, say the findings should provide timely and useful learning for the UK Government, whose recent 10-year NHS plan identifies digital transformation, including AI, as a key platform to improving the service and patient experience.
In 2023, NHS England launched a program to introduce AI to help diagnose chest conditions, including lung cancer, across 66 NHS hospital trusts in England.
The trusts are grouped into 12 imaging diagnostic networks: these hospital networks mean more patients have access to specialist opinions. Key functions of these AI tools included prioritizing critical cases for specialist review and supporting specialists’ decisions by highlighting abnormalities on scans.
The research was conducted by a team from UCL, the Nuffield Trust, and the University of Cambridge, analyzing how procurement and early deployment of the AI tools went. The study is one of the first studies to analyze real-world implementation of AI in health care.
Evidence from previous studies, mostly laboratory-based, suggested that AI might benefit diagnostic services by supporting decisions, improving detection accuracy, reducing errors and easing workforce burdens.
In this UCL-led study, the researchers reviewed how the new diagnostic tools were procured and set up through interviews with hospital staff and AI suppliers, identifying any pitfalls but also any factors that helped smooth the process.
They found that setting up the AI tools took longer than anticipated by the program’s leadership. Contracting took between four and 10 months longer than anticipated and by June 2025, 18 months after contracting was meant to be completed, one-third (23 out of 66) of the hospital trusts were not yet using the tools in clinical practice.
Key challenges included engaging clinical staff with already high workloads in the project, embedding the new technology in aging and varied NHS IT systems across dozens of hospitals and a general lack of understanding, and skepticism, among staff about using AI in health care.
The study also identified important factors which helped embed AI, including national program leadership and local imaging networks sharing resources and expertise, high levels of commitment from hospital staff leading implementation, and dedicated project management.
The researchers concluded that while “AI tools may offer valuable support for diagnostic services, they may not address current health care service pressures as straightforwardly as policymakers may hope” and are recommending that NHS staff are trained in how AI can be used effectively and safely and that dedicated project management is used to implement schemes like this in the future.
First author Dr. Angus Ramsay (UCL Department of Behavioral Science and Health) said, “In July ministers unveiled the Government’s 10-year plan for the NHS, of which a digital transformation is a key platform.
“Our study provides important lessons that should help strengthen future approaches to implementing AI in the NHS.
“We found it took longer to introduce the new AI tools in this program than those leading the program had expected.
“A key problem was that clinical staff were already very busy—finding time to go through the selection process was a challenge, as was supporting integration of AI with local IT systems and obtaining local governance approvals. Services that used dedicated project managers found their support very helpful in implementing changes, but only some services were able to do this.
“Also, a common issue was the novelty of AI, suggesting a need for more guidance and education on AI and its implementation.
“AI tools can offer valuable support for diagnostic services, but they may not address current health care service pressures as simply as policymakers may hope.”
The researchers conducted their evaluation between March and September last year, studying 10 of the participating networks and focusing in depth on six NHS trusts. They interviewed network teams, trust staff and AI suppliers, observed planning, governance and training and analyzed relevant documents.
Some of the imaging networks and many of the hospital trusts within them were new to procuring and working with AI.
The problems involved in setting up the new tools varied—for example, in some cases, those procuring the tools were overwhelmed by a huge amount of very technical information, increasing the likelihood of key details being missed. Consideration should be given to creating a national approved shortlist of potential suppliers to facilitate procurement at local level, the researchers said.
Another problem was initial lack of enthusiasm among some NHS staff for the new technology in this early phase, with some more senior clinical staff raising concerns about the potential impact of AI making decisions without clinical input and on where accountability lay in the event a condition was missed.
The researchers found the training offered to staff did not address these issues sufficiently across the wider workforce—hence their call for early and ongoing training on future projects.
In contrast, however, the study team found the process of procurement was supported by advice from the national team and imaging networks learning from each other.
The researchers also observed high levels of commitment and collaboration between local hospital teams (including clinicians and IT) working with AI supplier teams to progress implementation within hospitals.
Senior author Professor Naomi Fulop (UCL Department of Behavioral Science and Health) said, “In this project, each hospital selected AI tools for different reasons, such as focusing on X-ray or CT scanning, and purposes, such as to prioritize urgent cases for review or to identify potential symptoms.
“The NHS is made up of hundreds of organizations with different clinical requirements and different IT systems and introducing any diagnostic tools that suit multiple hospitals is highly complex. These findings indicate AI might not be the silver bullet some have hoped for but the lessons from this study will help the NHS implement AI tools more effectively.”
While the study has added to the very limited body of evidence on the implementation and use of AI in real-world settings, it focused on procurement and early deployment. The researchers are now studying the use of AI tools following early deployment when they have had a chance to become more embedded.
Further, the researchers did not interview patients and caregivers and are therefore now conducting such interviews to address important gaps in knowledge about patient experiences and perspectives, as well as considerations of equity.
More information:
Procurement and early deployment of artificial intelligence tools for chest diagnostics in NHS services in England: A rapid, mixed method evaluation, eClinicalMedicine (2025). DOI: 10.1016/j.eclinm.2025.103481
Citation:
Study sheds light on hurdles faced in transforming NHS health care with AI (2025, September 10)
retrieved 10 September 2025
from https://medicalxpress.com/news/2025-09-hurdles-nhs-health-ai.html
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‘The New Age of Sexism’ explores how misogyny is replicated in AI and emerging tech

Artificial intelligence and emerging technologies are already reshaping the world around us. But how are age-old inequalities showing up in this new digital frontier? In “The New Age of Sexism,” author and feminist activist Laura Bates explores the biases now being replicated everywhere from ChatGPT to the Metaverse. Amna Nawaz sat down with Bates to discuss more.
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